CFOs foresee increased risk of 'double dip' recession

Pessimism is growing among CFOs over the short-term prospects of the UK
economy, according to a survey which shows CFOs believe another descent into
recession is on the cards.

The
poll, carried out by Deloitte, revealed that CFOs now see a 38% chance of a
double dip, up from 33% in the first quarter of this year. Deloitte said the
results demonstrated the lowest level of confidence among CFOs in the past 12
months.

Other results showed that two thirds of CFOs expect the tighter fiscal policy
of the new Lib-Con coalition to have a negative short-term effect.

Ian Stewart, Deloitte chief economist, said: “The latest CFO Survey paints a
picture of concern about growth coupled with improvements in the corporate
credit and liquidity environment. Examining how CFOs plan to run their
companies’ finances enables us to see how corporates plan, in practice, to
reconcile these pressures.

“Cost control remains the top priority for UK CFOs, as it has been for the
last two years. With fears of a double dip increasing, CFOs are maintaining a
strong focus on costs. “